Mar 31, 2023
Independent Auditors'' Report
To the Members of Himatsingka Seide Limited
Report on the Audit of the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Himatsingka Seide Limited ("the Company"), which comprise
the Balance Sheet as at March 31, 2023, and the Statement of Profit and Loss (Including Other Comprehensive Income), Statement of
Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a
summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting
Standards) Rules, 2015, as amended ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31,2023, and its loss, other comprehensive loss, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities
under those SAs are further described in the Auditors'' Responsibilities for the Audit of the Standalone Financial Statements section of our
report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants ofIndia
(ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of
the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements for the year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORS'' REPORT THEREON
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in
the Management report, Chairman''s statement and Director''s report but does not include the standalone financial statements and our
auditors'' report thereon. The Management report, Chairman''s statement and Director''s report is expected to be made available to us after
the date of this auditors'' report.
Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the Management report, Chairman''s statement, Director''s report, etc, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to those charged with governance under SA 720 ''The Auditors'' responsibilities
Relating to Other Information''.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and
cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management is responsible for assessing the Company''s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
AUDITORS'' RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors'' report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
We give in "Annexure A" a detailed description of Auditors'' responsibilities for Audit of the Standalone Financial Statements.
The standalone financial statements of the Company for the year ended March 31, 2022, were audited by another auditor whose report
dated May 30, 2022 expressed an unmodified opinion on those statements.
Our opinion is not modified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1) As required by the Companies (Auditors'' Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in
Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section
133 of the Act.
e) On the basis of the written representations received from the directors as on March 31,2023 taken on record by the Board of
Directors, none of the directors are disqualified as on March 31,2023 from being appointed as a director in terms of Section
164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the
Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C".
g) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements - Refer note 28 to the standalone financial statements;
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses.
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.
iv) 1) The Management has represented that, to the best of its knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by
the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediariesâ), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
2) The Management has represented, that, to the best of its knowledge and belief, no funds have been received
by the Company from any person(s) or entity(ies), including foreign entities (Funding Parties), with the
understanding, whether recorded in writing or otherwise, as on the date of this audit report, that the Company
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
3) Based on the audit procedures performed that have been considered reasonable and appropriate in the
circumstances, and according to the information and explanations provided to us by the Management in this
regard nothing has come to our notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(e) as provided under (1) and (2) above, contain any material misstatement.
v) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in
accordance with Section 123 of the Act to the extent it applies to payment of dividend.
vi) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1,2023,
reporting under this clause is not applicable.
3) In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within
the limits prescribed under Section 197 of the Act and the rules thereunder.
Chartered Accountants
ICAI Firm Registration No. 105047W
Partner
Membership No. 067183
UDIN: 23067183BGWNTR9477
Date : May 30, 2023
Mar 31, 2018
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF HIMATSINGKA SEIDE LIMITED Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Himatsingka Seide Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone Ind AS financial statements").
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (''the Act'') with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance w ith the provisions of the A ct for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the Audit Report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the Auditor''s judgement, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of Management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the Auditor''s Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the Auditor''s Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 2018, its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Other Matter
Corresponding figures for the year ended 31 March 2017 have been audited by another auditor who expressed an unmodified opinion dated 23 May 2017 on the standalone Ind AS financial statements of the Company for the year ended 31 March 2017.
Our opinion on the standalone Ind AS financial statements is not modified in respect of the above matter.
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "A nnexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss, the Statement of Cash Flow and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act;
(e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a Director in terms of Section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to the standalone Ind AS financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B"; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer note 28 to the standalone Ind AS financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amount required to be transferred to the Investor Education and Protection Fund by the Company; and
iv. The disclosures in the Standalone Ind AS financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However amounts as appearing in the audited Standalone Ind AS financial statements for the period ended 31 March 2017 has been disclosed - refer note 38 to the standalone Ind AS financial statements.
With reference to the Annexure A referred to in paragraph 1 in Report on Other Legal and Regulatory Requirements of the Independent
Auditor''s Report to the Members of Himatsingka Seide Limited (''the Company'') on the standalone Ind AS financial statements for the year ended 31 March 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of two years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, certain fixed assets were physically verified during the year. No material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company including the share of undivided land jointly held with other entities as at the balance sheet date.
In respect of immovable properties taken on finance lease and disclosed as property, plant and equipment in the standalone Ind AS financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement except in case of four premises having a gross book value of '' 5.50 lacs and net book value of '' 3.02 lacs where the lease-cum-sale deed had been entered into by the Company and sale has not been registered upon completion of the lease period. The Company has initiated procedures for executing the sale in its favour.
(ii) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the Management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year-end, written confirmations have been obtained by the Management. The discrepancies noticed on verification between the physical stock and the book records were not material.
(iii) The Company has granted unsecured loans to three of its wholly owned subsidiaries covered in the Register maintained under Section 189 of the Companies Act, 2013 (''the Act'').
(a) In our opinion and according to the information and explanations given to us, the terms and conditions on which these loans had been granted to the wholly owned subsidiaries listed in the Register maintained under Section 189 of the Act are not, prima facie, prejudicial to the interest of the Company.
(b) In the case of the loans granted to the companies listed in the Register maintained under Section 189 of the Act, the terms of arrangements do not stipulate any repayment schedule and the loans are repayable on demand and interest is payable on demand. As there is no outstanding demand of principal and interest at the year-end, paragraph 3(iii)(b) and 3(iii)(c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act, with respect to the loans given, investments made, guarantees and security given.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning the directives issued by the Reserve Bank of India, provisions of Section 73 to 76 of the Act, any other relevant provisions of the Act and the relevant rules framed thereunder.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by the Central Government of India for maintenance of cost records under Section 148 of the Act in respect of products manufactured and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employee''s State Insurance, Income tax, Sales tax, Service tax, duty of Customs, duty of Excise, Value added tax, Goods and Services Tax, Cess and any other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been slight delays in few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employee''s State Insurance, Income tax, Sales tax, Service tax, duty of Customs, duty of Excise, Value added tax, Goods and Services Tax, Cess and any other material statutory dues were in arrears, as at 31 March 2018, for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues in respect of Sales-tax, Value added tax, Service tax , duty of Customs and Cess which have not been deposited on account of any dispute. The Company, however, disputes the following Income-tax and duty of Excise dues:
Name of the Statute |
Nature of the Dues |
Amount (in '') |
Period to which the amount relates |
Forum where dispute is pending |
Income-tax Act, 1961 |
Income Tax |
30,853,226 (24,484,608)* |
AY 1995-2005 |
Supreme Court of India |
Income-tax Act, 1961 |
Income Tax |
12,575,405 |
AY 1996 |
High Court of Karnataka |
Income-tax Act, 1961 |
Income Tax |
64,205,514 |
AY 2007-2014 |
Income Tax Appellate Tribunal |
Income-tax Act, 1961 |
Income Tax |
24,040,574 |
AY 2010-2015 |
Commissioner of Income Tax (Appeals) |
Central Excise Act, 1944 |
Excise Duty and penalty |
58,524,061 (622,174)* |
FY 2004-2013 |
Central Excise and Service Tax Appellate Tribunal |
Central Excise Act, 1944 |
Excise Duty and penalty |
16,097,302 (603,649)* |
April 2013 to February 2016 |
Commissioner of Central Excise (Appeals) |
*represents payments made under protest
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institutions or banks and dues to debenture holders. The Company does not have any outstanding loans or borrowings from government.
(ix) According to the information and explanations given to us and based on examination of the records of the Company, the term loans obtained during the year were applied for the purpose for which they were obtained. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year.
(x) According to the information and explanations given to us, no material fraud on the Company by its officers or employees or fraud by the Company has been noticed or reported during the course of our audit.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for Managerial Remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) According to the information and explanations given to us, in our opinion, the Company is not a Nidhi Company as prescribed under Section 406 of the Act.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, all transactions with the related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
(xvi) According to the information and explanation given to us and in our opinion the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to Standalone Ind AS financial statements of Himatsingka Seide Limited ("the Company") as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to Standalone Ind AS financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting ("Guidance Note") issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls with reference to Standalone Ind AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Standalone Ind AS financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to Standalone Ind AS financial statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone Ind AS financial statements included obtaining an understanding of internal financial controls with reference to Standalone I nd AS financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system with reference to Standalone Ind AS financial statements.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control with reference to Standalone Ind AS financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control with reference to Standalone Ind AS financial statements includes those policies and procedures that, (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of Management and Directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''s assets that could have a material effect on the Standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls with reference to Standalone Ind AS financial statements, including the possibility of collusion or improper Management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to Standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control with reference to Standalone Ind AS financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to Standalone Ind AS financial statements and such internal financial controls with reference to Standalone Ind AS financial statements were operating effectively as at 31 March 2018, based on the internal control with reference to Standalone Ind AS financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
for BSR &Co. LLP
Chartered Accountants
Firm''s Registration No.: 101248W/W-100022
Supreet Sachdev
Partner
Membership No. 205385
Place: Bengaluru
Date: 25 May 2018
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of HIMATSINGKA SEIDE LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements;
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
iv) The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the representations provided to us by the Management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
2) As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Bâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph 2 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
i) a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
According to the information and explanations given to us and based on the examination of the registered sale deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings are held in the name of the Company including share of undivided land jointly held with other entities as at the balance sheet date. Immovable properties of land and buildings whose title deeds have been pledged as security for loans are held in the name of the Company based on the confirmations directly received by us from lenders.
In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement except in case of four premises having a gross book value of Rs.5.50 Lakhs and net book value of Rs.3.12 Lakhs where the lease-cum-sale deed had been entered into by the Company and sale has not been registered upon completion of the lease period. The Company has initiated procedures for executing the sale in its favour.
ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no material discrepancies were noticed on physical verification.
iii) According to the information and explanations given to us, the Company has granted unsecured loans, to companies covered in the register maintained under section 189 of the Companies Act, 2013, in respect of which:
a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal amounts and interest have been regular as per stipulations.
c) There is no overdue amount remaining outstanding as at the balance sheet date.
The Company has not granted any loans, secured or unsecured, to firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities, as applicable.
v) According to the information and explanations given to us, the Company has not accepted any deposits during the year and does not have any unclaimed deposits.
vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii) According to the information and explanations given to us, in respect of statutory dues:
a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident Fund, Employeesâ State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory dues in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which have not been deposited as on March 31, 2016 on account of disputes are given below:
Statute |
Nature of Dues |
Forum where Dispute is pending |
Period to which the amount relates |
Amount involved (Rs. in Lakhs) |
Income Tax Act, 1961 |
Income Tax |
Supreme Court |
1993-94 |
39.23 |
High Court of Karnataka |
1994-95 |
125.75 |
||
Supreme Court |
2003-04 |
24.46* |
||
Income Tax Appellate Tribunal |
2005-06 |
23.68 |
||
Commissioner of Income Tax (Appeals) |
2008-09 |
6.82 |
||
2012-13 |
595.89 |
|||
Central Excise Act, 1944 |
Excise Duty |
Central Excise and Service Tax Appellate Tribunal |
2003-04 to 2008-09 |
265.40 |
February 2009 to December 2009 |
33.14^ |
|||
August 2012 to March 2013 |
16.28 |
|||
Commissioner of Central Excise (Appeals) |
April 2013 to July 2014 |
6.02# |
||
August 2014 to January 2015 |
6.46! |
|||
February 2015 to August 2015 |
32.80@ |
*Net of Rs.100 Lakhs paid under protest.
ANet of Rs.5 Lakhs paid under protest.
#Net of Rs.0.48 Lakhs paid under protest.
!Net of Rs.0.52 Lakhs paid under protest.
@Net of Rs.2.65 Lakhs paid under protest.
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and dues to debenture holders. There are no borrowings from government.
ix) In our opinion and according to the information and explanations given to us, during the year the Company has not raised money by way of initial public offer/ further public offer (including debt instruments) and the money raised by way of term loans have been applied by the Company during the year for the purposes for which they were raised other than temporary deployment pending application of proceeds.
x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Firmâs Registration No. 008072S
Monisha Parikh
Partner
Membership No. 47840
Bengaluru, May 23, 2017
Mar 31, 2016
We have audited the accompanying standalone financial statements of
HIMATSINGKA SEIDE LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2016, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the "Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
prescribed under section 133 of the Act, as applicable.
This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder and the Order under section 143 (11) of the Act.
We conducted our audit of the standalone financial statements in
accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2016, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards prescribed under section 133 of the Act,
as applicable.
e) On the basis of the written representations received from the
directors as on March 31, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A". Our report
expresses an unmodified opinion on the adequacy and operating
effectiveness of the Company''s internal financial controls over
financial reporting.
g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its
financial position in its financial statements
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
2) As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified
in paragraphs 3 and 4 of the Order.
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover
all the items in a phased manner over a period of 2 years which, in our
opinion, is reasonable having regard to the size of the Company and the
nature of its assets. Pursuant to the program, certain fixed assets
were physically verified by the Management during the year. According
to the information and explanations given to us, no material
discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and based
on the examination of the registered sale deeds provided to us, we
report that, the title deeds, comprising all the immovable properties
of land and buildings are held in the name of the Company including
share of undivided land jointly held with other entities as at the
balance sheet date. Immovable properties of land and buildings whose
title deeds have been pledged as security for loans are held in the
name of the Company based on the confirmations directly received by us
from lenders.
In respect of immovable properties of land and buildings that have been
taken on lease and disclosed as fixed assets in the financial
statements, the lease agreements are in the name of the Company, where
the Company is the lessee in the agreement except in case of 4 premises
having a gross book value of Rs. 5.50 Lakhs and net book value of Rs.
3.22 Lakhs where the lease-cum-sale deed had been entered into by the
Company and sale has not been registered upon completion of the lease
period. The Company has initiated procedures for executing the sale in
its favour.
(ii) As explained to us, the inventories were physically verified
during the year by the Management at reasonable intervals and no
material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the
Company has granted unsecured loans, to companies covered in the
register maintained under section 189 of the Companies Act, 2013, in
respect of which:
(a) The terms and conditions of the grant of such loans are, in our
opinion, prima facie, not prejudicial to the Company''s interest.
(b) The schedule of repayment of principal and payment of interest has
been stipulated and repayments or receipts of principal amounts and
interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the balance
sheet date.
The Company has not granted any loans, secured or unsecured, to firms,
Limited Liability Partnerships or other parties covered in the register
maintained under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of Sections
185 and 186 of the Companies Act, 2013 in respect of grant of loans,
making investments and providing guarantees and securities, as
applicable.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits during the year and does not have
any unclaimed deposits.
(vi) The maintenance of cost records has been specified by the Central
Government under section 148(1) of the Companies Act, 2013. We have
broadly reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Records and Audit) Rules, 2014, as amended
prescribed by the Central Government under sub-section (1) of Section
148 of the Companies Act, 2013, and are of the opinion that, prima
facie, the prescribed cost records have been made and maintained We
have, however, not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees'' State Insurance,
Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value
Added Tax, cess and other material statutory dues applicable to it to
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax,
Customs Duty, Excise Duty, Value Added Tax, cess and other material
statutory dues in arrears as at March 31, 2016 for a period of more
than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs
Duty, Excise Duty, and Value Added Tax which have not been deposited as
on March 31, 2016 on account of disputes are given below:
Amount
Forum where
Nature of Period to
which the involved
Statute Dispute is
Dues amount relates (Rs. in
pending Lakhs)
Income Tax Income Tax Supreme Court 1993-94 39.23
Act 1961 High Court of
Karnataka 1994-95 125.75
Supreme Court 2003-04 24.46*
Income Tax
Appellate
Tribunal 2005-06 23.68
Commissioner of
Income Tax 2008-09 6.82
(Appeals)
Central Excise Duty Central Excise
and Service Tax 2003-04 to
2008-09 265.40
Excise Act, Appellate
Tribunal February 2009
to December
2009 33.14^
1944
August 2012 to
March 2013 16.28
Commissioner of
Central Excise April 2013 to
July 2014 6.02#
(Appeals)
*Net of Rs. 100 Lakhs paid under protest.
ANet of Rs. 5 Lakhs paid under protest.
#Net of Rs. 0.48 Lakhs paid under protest.
(viii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of loans or
borrowings to financial institutions, banks and dues to debenture
holders. There are no borrowings from government.
(ix) In our opinion and according to the information and explanations
given to us, during the year the Company has not raised money by way of
initial public offer/ further public offer (including debt instruments)
and the money raised by way of term loans have been applied by the
Company during the year for the purposes for which they were raised
other than temporary deployment pending application of proceeds.
(x) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company by its officers or employees has been noticed or
reported during the year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has paid / provided managerial remuneration in
accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under
clause (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations
given to us the Company is in compliance with Section 177 and 188 of
the Companies Act, 2013, where applicable, for all transactions with
the related parties and the details of related party transactions have
been disclosed in the financial statements etc. as required by the
applicable accounting standards.
(xiv) During the year, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible
debentures and hence reporting under clause (xiv) of the Order is not
applicable to the Company.
(xv) In our opinion and according to the information and explanations
given to us, during the year the Company has not entered into any
non-cash transactions with its directors or directors of its holding,
subsidiary or associate company or persons connected with them and
hence provisions of section 192 of the Companies Act, 2013 are not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Firm''s Registration No. 008072S
Monisha Parikh
Partner
Bengaluru, May 21, 2016 Membership No. 47840
Mar 31, 2015
We have audited the accompanying standalone financial statements of
HIMATSINGKA SEIDE LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143 (11)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i) The Company has disclosed the impact of pending litigations on its
financial position in its note 30 (a) (i) to the standalone financial
statements;
ii) The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a programme of verification of fixed assets to
cover all the items in a phased manner over a period of 2 years which,
in our opinion, is reasonable having regard to size of the Company and
nature of its assets. Pursuant to the programme, certain fixed assets
are physically verified by the management. According to information and
explanation given to us, no material discrepancies were noticed on such
verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) According to the information and explanation given to us, the
Company has granted loans, secured or unsecured, to companies, firms,
or other parties covered in the Register maintained under Section 189
of the Companies Act 2013. In respect of such loans:
(a) The receipt of principal amounts and interest have been as per the
stipulation.
(b) There are no overdue amounts remaining outstanding as at the
year-end.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit during the year and there were no
unclaimed deposits as at March 31, 2015.
(vi) According to the information and explanations given to us in our
opinion, the Company have, prima facie, made and maintained the
prescribed cost records pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government
under subsection (1) of Section 148 of the Companies Act, 2013. We
have, however not made a detailed examination of the cost records with
a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
statutory dues, including Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax,Customs Duty, Excise
Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, , Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax,Customs Duty, Excise Duty, Value Added Tax, Cess and other
material statutory dues in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
(c) Details of dues of, Income-tax, Sales tax, Wealth tax, Service Tax,
Custom duty, Excise duty, Value Added Tax and Cess which have not been
deposited as on March 31, 2015 on account of disputes are given below.
Statute Nature of Forum where Period to Amount
Dues Dispute is which involved
pending the amount (Rs. in
relates Lakhs )
Income Income Taxes Supreme Court AY 1994-95 39.23
Tax
Act High Court of AY 1995-96 125.75
Karnataka
Commissioner of AY 2004-05 24.46
Income
Tax (Appeals) AY 2006-07 23.68
AY 2009-10 6.82
Central Excise Duty Central Excise FY 2003-04 to 265.40
Excise and Service
Act Tax Appellate 2008 - 09
Tribunal February 2009 to 71.40
December 2009
Commissioner of August 2012 to 32.58
Central
Excise March 2013
(d) There are no amounts that are due to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made
thereunder.
(viii) The Company does not have accumulated losses at the end of the
financial year and the Company has not incurred cash losses during the
financial year covered by our audit and in the immediately preceding
financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(x) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xii) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 008072S)
S. Sundaresan
(Partner)
(Membership No. 25776)
BENGALURU, May 23, 2015
Mar 31, 2014
We have audited the accompanying financial statements of HIMATSINGKA
SEIDE LIMITED ("the Company") which comprise the Balance Sheet as at
31st March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of the signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of fi
nancial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notifi ed under the Companies
Act, 1956 ("the Act") (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs) and in accordance with the accounting principles generally
accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the fi
nancial statements.
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specifi ed
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and
Loss, and the Cash Flow Statement comply with the Accounting Standards
notifi ed under the Act (which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate
Affairs).
e) On the basis of the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualifi ed as on 31st March,
2014 from being appointed as a director in terms of Section 274(1)(g)
of the Act.
ANNEXURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of our report of even date)
(i) Having regard to the nature of the Company''s business/activities
during the year, clauses vi, xii, xiii, xiv, xix, xx of paragraph 4 of
the Order are not applicable to the Company.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
(b) The Company has a programme of verifi cation of fixed assets to
cover all the items in a phased manner over a period of 2 years which,
in our opinion, is reasonable having regard to size of the Company and
nature of its assets. Pursuant to the programme, certain fixed assets
are physically verifi ed by the management. According to the
information and explanation given to us, no material discrepancies were
noticed on such verifi cation.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verifi ed
during the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifi cation of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verifi cation.
(iv) In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register
maintained under Section 301 of the Companies Act 1956, according to
the information and explanations given to us:
(a) The Company has granted loans aggregating Rs.400 lakhs to one
subsidiary during the year. At the year-end, the outstanding balances
of such loans aggregated to Rs.11,376.44 lakhs (from two subsidiaries)
and the maximum amount involved during the year was Rs.11,376.44 lakhs
(from two subsidiaries).
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(c) The receipts of principal amounts and interest have been as per
stipulations.
(d) There are no overdue amounts in respect of such loans remaining
outstanding as at the year-end
In respect of loans, secured or unsecured, taken by the Company from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
(a) The Company has not taken any loans during the year. At the
year-end, the outstanding balance of such loans taken aggregated
Rs.545.30 lakhs (from one party) and the maximum amount involved during
the year was Rs.2,145.30 Lakhs (from one party).
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(c) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
(v) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transactions is in excess of Rs.5 lakhs in respect
of any party, the transactions have been made at prices which are,
prima facie, reasonable having regard to the prevailing market prices
at the relevant time.
(vii) In our opinion, the internal audit function carried out during
the year by firm of Chartered Accountants appointed by the management
have been commensurate with the size of the Company and the nature of
its business.
(viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and of are the opinion that, prima facie, the
prescribed cost records has been made and maintained. We have, however,
not made a detailed examination of the cost records with a view to
determine if they are accurate or complete.
(ix) According to the information and explanations given to us, in
respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues in arrears as at
March 31, 2014 for a period of more than six months from the date they
became payable, other than income tax dues of Rs.343.76 Lakhs.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2014 on account of disputes are given below:
Statute Nature of Forum where Dispute is pending
Dues
Income Tax Act Income Tax Supreme Court
Income Tax Act Income Tax High Court of Karnataka
Income Tax Act Income Tax Commissioner of Income Tax
(Appeals)
Income Tax Act Income Tax Commissioner of Income Tax
(Appeals)
Income Tax Act Income Tax Commissioner of Income Tax
(Appeals)
Income Tax Act Income Tax Commissioner of Income Tax
(Appeals)
Central Excise Duty Central Excise and Service Tax
Appellate Tribunal
Excise Act
Central Excise Excise Duty Central Excise and Service Tax
Act & Penalty Appellate Tribunal
Statue Period to which the Amount involved
amount relates (Rs. in lakhs)
Income Tax Act AY 1994-95 39.23
Income Tax Act AY 1995-96 125.75
Income Tax Act AY 2004-05 24.46
Income Tax Act AY 2006-07 61.71
Income Tax Act AY 2007-08 33.91
Income Tax Act AY 2009-10 6.82
Central
Excise Act FY 2003-04 to 265.40
2008-09
Central Excise
Act February 2009 to 76.40
December 2009
(x) The Company does not have accumulated losses at the end of the fi
nancial year and the Company has not incurred cash losses during the fi
nancial year covered by our audit and in the immediately preceding fi
nancial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
financial institutions, banks and debenture holders.
(xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial
institutions are not, prima facie, prejudicial to the interests of the
Company.
(xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
(xiv) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long- term investment.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not made any allotment of shares during
the year.
(xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Firm Registration No. 008072S)
S. Sundaresan
(Partner)
(Membership No. 25776)
BANGALORE, May 15, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of HIMATSINGKA
SEIDE LIMITEd ("the Company") which comprise the Balance Sheet as at
March 31, 2013, the Statement of Proft and Loss and the Cash Flow
Statement for the year then ended, and a summary of the signifcant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the fnancial
position, fnancial performance and cash fows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the fnancial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fnancial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the fnancial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the fnancial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company''s internal control. An audit also includes
evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Management, as
well as evaluating the overall presentation of the fnancial statements.
We believe that the audit evidence we have obtained is suffcient and
appropriate to provide a basis for our audit opinion.
opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid fnancial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
b) in the case of the Statement of Proft and Loss, of the proft of the
Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
emphasis of Matter
As referred to in Note 36(3) of the Financial Statement, in accordance
with the hedge accounting principles per Accounting Standard (AS) 30
"Financial Instruments: Recognition and Measurement", from April 01,
2012 the Company designated pre- shipment credit ("PCFC") which are
taken and repayable in foreign currency from future exports, as hedging
instrument to hedge its foreign currency risk against such committed
export sales. The exchange gain / loss on such hedging, where the hedge
is effective, is transferred to the Hedge Reserve in the Balance Sheet.
As per the principles all such items in the Hedge reserve will be
transferred back to the Statement of Proft and Loss on occurrence of
the hedged transaction. The net exchange gain in respect of the above
as on March 31, 2013 was Rs. 185 Lakhs.
Our opinion is not qualifed in respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specifed in
paragraphs 4 and 5 of the Order.
2. As required under provisions of Section 227(3) of the Act, we
report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Proft and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books.
d) In our opinion, the Balance Sheet, Statement of Proft and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
Section 211(3C) of the Act.
e) On the basis of written representations received from the directors
as on March 31, 2013 taken on record by the Board of Directors, none of
the directors is disqualifed as on March 31, 2013 from being appointed
as a director in terms of Section 274(1)(g) of the Act.
ANNExURE TO THE AUDITORS'' REPORT
(Referred to in paragraph 1 under ÂReport on other Legal and Regulatory
Requirements'' section of our report of even date)
i) Having regard to the nature of the Company''s business / activities,
during the year, clauses vi, xii, xiii, xiv, xix, xx of paragraph 4 of
the Order are not applicable to the Company.
ii) In respect of its fxed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fxed assets.
b) The fxed assets were physically verifed during the year by the
Management in accordance with a regular programme of verifcation which,
in our opinion, provides for physical verifcation of all the fxed
assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verifcation.
c) The fxed assets disposed off during the year, in our opinion, do not
constitute a substantial part of the fxed assets of the Company and
such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) In respect of its inventory:
a) As explained to us, the inventories were physically verifed during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verifcation of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verifcation.
iv) In respect of loans, secured or unsecured, granted by the Company
to companies, frms or other parties covered in the Register maintained
under Section 301 of the Companies Act 1956, according to the
information and explanations given to us:
a) The Company has granted loans aggregating Rs. 6,901.22 lakhs to one
subsidiary during the year. At the year-end, the outstanding balances
of such loans aggregated to Rs. 9,970.72 lakhs (from two subsidiaries)
and the maximum amount involved during the year was Rs. 9,970.72 lakhs
(from two subsidiaries).
b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
c) The receipts of principal amounts and interest have been as per
stipulations.
d) There are no overdue amounts in respect of such loans remaining
outstanding as at the year-end
In respect of loans, secured or unsecured, taken by the Company from
companies, frms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
a) The Company has not taken any loans during the year. At the
year-end, the outstanding balance of such loans taken aggregated Rs.
2,145.30 lakhs (from one party) and the maximum amount involved during
the year was Rs. 2,170.30 Lakhs (from one party).
b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
c) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fxed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a) The particulars of contracts or arrangements referred to Section 301
that needed to be entered in the Register maintained under the said
Section have been so entered.
b) Where each of such transactions is in excess of Rs. 5 lakhs in
respect of any party, and having regard to the explanations that some
of the items purchased are of special nature and suitable alternative
sources are not readily available for obtaining comparable quotations,
as stated in para (v) above, the transactions have been made at prices
which are, prima facie, reasonable having regard to the prevailing
market prices at the relevant time.
vii) In our opinion, the internal audit function carried out during the
year by frm of Chartered Accountants appointed by the management have
been commensurate with the size of the Company and the nature of its
business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and of are the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine if they are accurate or complete.
ix) According to the information and explanations given to us, in
respect of statutory dues:
a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees'' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess and other material statutory dues in arrears as at
March 31, 2013 for a period of more than six months from the date they
became payable.
x) The Company does not have accumulated losses at the end of the
fnancial year. The Company has not incurred cash losses in the fnancial
year and in the immediately preceding fnancial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has been not defaulted in the repayment of
dues to fnancial institutions, banks and debenture holders.
xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and fnancial institutions
are not, prima facie, prejudicial to the interests of the Company.
xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied by the Company during the
year for the purposes for which they were obtained, other than
temporary deployment pending application.
xiv) In our opinion and according to the information and explanations
given to us, and on an overall examination of the Balance Sheet of the
Company, we report that funds raised on short-term basis have, prima
facie, not been used during the year for long-term investment.
xv) In our opinion and according to the information and explanations
given to us, the Company has not made any allotment of shares during
the year.
xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For deLoITTe HASkINS & SeLLS,
Chartered Accountants
(Registration No. 008072S)
Bangalore, May 25, 2013 S. Sundaresan
Partner
(Membership No. 25776)
Mar 31, 2012
1. We have audited the attached Balance Sheet of HIMATSINGKA SEIDE
LIMITED ("the Company") as at March 31, 2012, the Statement of Profit
and Loss and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2012;
ii) in the case of the Statement of Profit and Loss Account, of the
profit of the Company for the year ended on that date, and
iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on March 31, 2012 taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2012 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our report of even date)
i) Having regard to the nature of the Company's business / activities,
clauses vi, xii, xiii, xiv, xix, xx of CARO are not applicable.
ii) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii) In respect of its inventory:
a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv) In respect of loans, secured or unsecured, granted by the Company
to companies, firms or other parties covered in the Register under
Section 301 of the Companies Act, 1956, according to the information
and explanations given to us:
a) The Company has granted loans aggregating Rs. 1,004.27 lakhs to one
subsidiary during the year. At the year-end, the outstanding balances
of such loans aggregated to Rs. 3,069.50 lakhs (from two subsidiaries)
and the maximum amount involved during the year was Rs. 8,821.60 lakhs
(from three subsidiaries).
b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
c) The receipts of principal amounts and interest have been as per
stipulations.
d) There is no overdue amount in respect of loans granted to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956.
In respect of loans, secured or unsecured, taken by the Company from
companies, firms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
a) The Company has taken loans aggregating Rs. 20.00 lakhs from one
party during the year. At the year-end, the outstanding balance of such
loans taken aggregated Rs. 2,170.30 lakhs and the maximum amount
involved during the year was Rs. 3,222.30 Lakhs.
b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
c) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
v) In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
vi) In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
a) The particulars of contracts or arrangements referred to Section 301
that needed to be entered in the Register maintained under the said
Section have been so entered.
b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are, prima facie, reasonable having regard to the prevailing market
prices at the relevant time except in respect of certain purchases for
which comparable quotations are not available and in respect of which
we are unable to comment.
vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1)(d) of the
Companies Act, 1956 and of are the opinion that, prima facie, the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine if they are accurate or complete.
ix) In our opinion and according to the information and explanations
given to us, in respect of statutory dues:
a) Except for some delays in deduction and its consequent remittance of
tax deduction at source in case of certain payments, the Company has
generally been regular in depositing undisputed dues, including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom
Duty, Excise Duty, Cess and other material statutory dues applicable to
it with the appropriate authorities.
b) Other than income tax deducted at source amounting to Rs. 2.44
lakhs, there were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at March 31, 2012 for a
period of more than six months from the date they became payable. These
taxes have been subsequently paid in May 2012.
c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2012 on account of disputes are given below:
Nature of Period to
which the Amount
involved
Statute Forum where
Dispute is pending
Dues amount relates (Rs. in
lakhs)
Commissioner of
Income Tax
Income
Tax Act Income Tax FY 2003-04 24.46
(Appeals)
Income
Tax Act Income Tax Income Tax
Appellate Tribunal FY 2006-07 31.49
Income
Tax Act Income Tax High Court of
Karnataka FY 1994-95 125.75
Income
Tax Act Income Tax Supreme Court FY 1993-94 39.23
Central Excise and
Service Tax
Central
Excise Act Excise Duty FY 2003-04 to
2008-09 265.40
Appellate Tribunal
Excise Duty & The Commissioner of
Central Excise February 2009 to
Central
Excise Act 76.40
Penalty (Appeals) December 2009
Service Tax & The Commissioner of
Central Excise January 2005
to March
Service
Tax Act 54.84
Penalty (Appeals) 2006
x) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
xi) In our opinion and according to the information and explanations
given to us, the Company has been not defaulted in the repayment of
dues to banks and financial institutions.
xii) In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
xiii) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
xiv) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have, prima facie, not
been used during the year for long-term investment.
xv) In our opinion and according to the information and explanations
given to us, the Company has not made any allotment of shares during
the year.
xvi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Registration No. 008072S
Place: Bangalore S. Sundaresan
Date: May 26, 2012 Partner
Membership No. 25776
Mar 31, 2011
1. We have audited the attached Balance Sheet of HIMATSINGKA SEIDE
LIMITED ("the Company") as at March 31, 2011, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We draw attention to Note 18 (3) of Schedule 19 to the accounts. As
explained, the liability, if any, that may arise under the referenced
contract with a Bank is dependent on the exchange rate between two
currencies during a specified period in the future. Because of this
significant uncertainty the Company has not provided for any liability
that may arise of this contract in the financial statements.
4. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
5. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31 2011;
(ii) in the case of the Profit and Loss Account, of the loss of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
6. On the basis of the written representations received from the
Directors as on March 31, 2011 taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
March 31, 2011 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
Annexure to the Auditors' Report
(Referred to in paragraph 4 of our report of even date)
i. Having regard to the nature of the Company's business/activities,
clauses vi, xii, xiii, xiv, xix, xx of CARO are not applicable.
ii. In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iv In respect of loans, secured or unsecured, granted by the Company to
companies, firms or other parties covered in the Register under Section
301 of the Companies Act, 1956, according to the information and
explanations given to us:
(a) The Company has granted loans aggregating Rs. 453.05 lakhs to one
subsidiary during the year. At the year-end, the outstanding balances
of such loans aggregated to Rs.7,418.49 lakhs (from three subsidiaries)
and the maximum amount involved during the year was Rs. 7,798.99 lakhs
(from three subsidiaries).
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(c) The receipts of principal amounts and interest have been as per
stipulations.
(d) There is no overdue amount in respect of loans granted to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956.
In respect of loans, secured or unsecured, taken by the Company from
companies, frms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
(a) The Company has taken loans aggregating Rs.1,570.00 lakhs from one
party during the year. At the year-end, the outstanding balance of such
loans taken aggregated Rs.3,222.30 lakhs and the maximum amount
involved during the year was Rs. 3,222.30 Lakhs.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(c) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
v. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of the items
purchased are of special nature and suitable alternative sources are
not readily available for obtaining comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of
inventory and fixed assets and the sale of goods and services. During
the course of our audit, we have not observed any major weakness in
such internal control system.
vi. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are, prima facie, reasonable having regard to the prevailing market
prices at the relevant time except in respect of certain purchases for
which comparable quotations are not available and in respect of which
we are unable to comment.
vii. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of textile and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete. To the best of our knowledge and according to the
information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records for any other product of
the Company.
ix. In our opinion and according to the information and explanations
given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at March 31, 2011 for a
period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2011 on account of disputes are given below:
Statute Nature of Forum where Period to Amount
Dues Dispute is which the involved
pending amount (Rs. in
relates lakhs)
Income Income Commissioner FY 2002-03 4,474.03
Tax Act tax of Income to 2004-05
Tax (Appeals) and 2006-07
Excise Excise Commissioner FY 2003-04 265.40
Duty Duty of Commercial to 2008-09
Taxes
x. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the financial
year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to banks
and financial institutions.
xii. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
xiii. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application.
xiv In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
xv In our opinion and according to the information and explanations
given to us, the Company has not made any allotment of shares during
the year.
xvi. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
Registration No.008072S
S. Sundaresan
Partner
Membership No.25776
Place : Bangalore
Date : May 19, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of HIMATSINGKA SEIDE
LIMITED ("the Company") as at March 31, 2010, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These fnancial statements are the
responsibility of the CompanyÃs Management. Our responsibility is to
express an opinion on these financial statements based on our audit
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
fnancial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. We draw attention to Note 23 (3) (ii) of Schedule 18 to the
accounts. As explained, the liability, if any, that may arise under the
referenced contract with a Bank is dependent on the exchange rate
between two currencies during a specified period in the future. Because
of this significant uncertainty the Company has not provided for any
liability that may arise of this contract in the financial statements.
4. As required by the Companies (AuditorÃs Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
5. Further to our comments in the Annexure referred to in paragraph 4
above, we report that:
(a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
(b) in our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
6. On the basis of the written representations received from the
Directors as on March 31, 2010 taken on record by the Board of
Directors, we report that none of the Directors is disqualifed as on
March 31, 2010 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
Annexure to the Auditors Report
Having regard to the nature of the CompanyÃs business/activities,
clauses vi, xii, xiii, xiv, xix, xx of CARO are not applicable. ii.
In respect of its fixed assets
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verifed during the year by the
Management in accordance with a regular programme of verification
which, in our opinion, provides for physical verifcation of all the
fixed assets at reasonable intervals. According to the information and
explanation given to us, no material discrepancies were noticed on such
verifcation
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
iii. In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the Management at reasonable intervals.
(b) In our opinion and according to the information and explanation
given to us, the procedures of physical verification of inventories
followed by the Management need to be strengthened to identify and
cover all inventory locations.
(c) In our opinion and according to the information and explanations
given to us, except for sample stock, the Company has maintained proper
records of its inventories, and other than sample stocks, where in the
absence of records, we are unable to determine discrepancies, if any,
no material discrepancies were noticed on physical verification
iv In respect of loans, secured or unsecured, granted by the Company to
companies, firms or other parties covered in the
Register under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
(a) The Company has granted loans aggregating Rs. 605.30 lakhs to one
subsidiary during the year. At the year-end the outstanding balances of
such loans aggregated to Rs.7,273.44 lakhs (from three subsidiaries)
and the maximum amount involved during the year was Rs.14,583.80 lakhs
(from four subsidiaries).
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(c) The receipts of principal amounts and interest have been as per
stipulations.
(d) There is no overdue amount in respect of loans granted to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act 1956.
In respect of loans, secured or unsecured, taken by the Company from
companies, frms or other parties covered in the Register maintained
under Section 301 of the Companies Act, 1956, according to the
information and explanations given to us:
(a) The Company has taken loans aggregating Rs.1,625.00 lakhs from one
party during the year. At the year-end, the outstanding balance of such
loans taken aggregated Rs.2,390.30 lakhs and the maximum amount
involved during the year was Rs.4,015.30 Lakhs.
(e) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie, not prejudicial to the interests of
the Company.
(c) The payments of principal amounts and interest in respect of such
loans are as per stipulations.
v. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some of
the items purchased are of special nature and suitable alternative
sources are not readily available for obtaining comparable quotations,
there is an adequate internal control system commensurate with the size
of the Company and the nature of its business with regard to purchases
of inventory and fixed assets and the sale of goods and services.
During the course of our audit, we have not observed any major weakness
in such internal control system
vi. In respect of contracts or arrangements entered in the Register
maintained in pursuance of Section 301 of the Companies
Act, 1956, to the best of our knowledge and belief and according to the
information and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the Register maintained under the said
Section have been so entered
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are, prima facie, reasonable having regard to the prevailing market
prices at the relevant time except in respect of certain purchases for
which comparable quotations are not available and in respect of which
we are unable to comment.
vii. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under Section 209(1) (d) of the Companies
Act, 1956 in respect of textile and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. We have, however, not made a detailed examination of the
records with a view to determining whether they are accurate or
complete. To the best of our knowledge and according to the
information and explanations given to us, the Central Government has
not prescribed the maintenance of cost records for any other product of
the Company.
ix. In our opinion and according to the information and explanations
given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed
dues, including Provident Fund, Investor Education and Protection Fund,
Employeesà State Insurance, Income-tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues
applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Investor Education and Protection Fund, Employeesà State
Insurance, Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other material statutory dues in arrears as at March 31, 2010 for a
period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax,
Custom Duty, Excise Duty and Cess which have not been deposited as on
March 31, 2010 on account of disputes are given below:
Statute Nature Forum where Period to Amount
involved of Dues Dispute which the
is pending amount relates (Rs. in lakhs)
Income
Tax Act Income
tax Commissioner
of FY 2003-04 51.31
Income Tax
(Appeals)
Customs
Act Export
Duty High Court
of May 10, 2008
to Aug 20.14
Karnataka 23, 2008
KVAT Act Karnataka
VAT Commissioner
of FY 2007-2008 40.20
Commercial
Taxes
x. The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the
financial year and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks and financial institutions
xii. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
Company for loans taken by others from banks and financial institutions
are not, prima facie, prejudicial to the interests of the Company.
xiii. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained, other than temporary deployment pending
application
xiv. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have, prima facie, not
been used during the year for long-term investment.
xv In our opinion and according to the information and explanations
given to us, the Company has not made any allotment of shares during
the year.
xvi. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no fraud on the
Company has been noticed or reported during the year.
For Deloitte Haskins & Sells
Chartered Accountants
Registration No. 008072S
V. Srikumar
Partner
Membership No.84494
Place : Bangalore
Date : May 30, 2010